Kronospan UA modernisation (EBRD-47319)

Countries
  • Ukraine
Where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Dec 16, 2015
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Kronospan UA
The holder of the loan, grant, or other investment.
Sectors
  • Construction
  • Energy
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 43.75 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported EUR 40.00 million
Converted using 2015-12-16 exchange rate.
Project Cost (USD)
$ 73.28 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Currency conversion note:
Bank reported EUR 67.00 million
Converted using 2015-12-16 exchange rate.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Jul 25, 2017

Disclosed by Bank Nov 13, 2015


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Project Description
This project comprises of a loan to Kronospan UA to finance its capital expenditure in the project's three components: i) Energy efficiency and resource efficiency initiative, including the installation of a 15MW biomass boiler that uses wood by-products and waste from the production process as a fuel for heat production; ii) Market expansion, including an increased demand for wood raw materials for the plant; and iii) Improved quality of the final product which will enable them to increase exports to the EU market.
Investment Description
  • European Bank for Reconstruction and Development (EBRD)
Kronospan UA is a wholly-owned Ukrainian subsidiary of Kronospan Holdings East Limited, Cyprus. Kronospan is the market leader in the wood-based panel sector. It manufactures wood-based panel products at over 40 sites in 27 countries, including Poland, Czech Republic, Slovakia, Bulgaria, Romania, Hungary, Croatia, Serbia, Russia, Belarus and Ukraine. It currently employs over 14,000 people and has revenues in excess of € 4.5bn a year.
Contact Information
Chris Ryan / Oliver Vaughan c.ryan@kronospan.co.uk / o.vaughan@kronospan.co.uk + 44 1691 775 257/343 +44 1691 776 196 www.kronospan-worldwide.com Kronospan Limited Holyhead Road Chirk Wrexham LL14 5NT ACCOUNTABILITY MECHANISM OF EBRD The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent. You can contact the PCM at pcm@ebrd.com or you can submit a complaint online using an online form, http://www.ebrd.com/eform/pcm/complaint_form?language=en. You can learn more about the PCM and how to file a complaint at http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html.